LOAN PAYMENTS - PRINCIPAL AND INTEREST PAYMENTS You purchased a new tractor on April 1, 2022, for $330,000 and have two different options available for financing (one from the bank and one from the dealer). Develop loan schedules to calculate total interest paid under each option. The loan methods to be investigated: (10) Option 1. Finance at 5.0% interest rate, semi-annual payments, with a down payment of 12% and amortize the loan in 5 years using EQUAL PRINCIPAL PAYMENTS, and first payment due on 10/1/22. Calculate the total payment, principal payment, interest payment, and the principal balance outstanding for each payment. You will need to divide the amount financed by the number of payments to come up with the equal principal payments, then calculate the interest payment. (Don't forget to convert your annual interest rate to a semi- annual rate when calculating the interest payment.) The two added together will be the total payment. When calculating the balance outstanding, be sure to only subtract the principal payment, not the total payment. Sum all of the columns except the principal balance outstanding. (10) Option 2. Finance the purchase at 4.0% interest rate, annual payments, with a down payment of 20% and amortize the loan in 6 years using EQUAL TOTAL PAYMENTS, and first payment due on 4/1/23. Calculate the total payment, principal payment, interest payment, and the principal balance outstanding for each payment. You will need to find the amortization factor (located in Table 1 of the Appendix of your textbook), multiply that by the amount financed to find the equal total payments. The portion of the total payment that does not go toward interest goes toward principal. When calculating the balance outstanding, be sure to only subtract the principal payment, not the total payment. (Note: You will need to make a balance adjustment on the last Total Payment so that your balance outstanding is zero after all payments are made.) Sum all of the columns except the principal balance outstanding. (5) Analysis: Discuss the advantages and disadvantages of each loan repayment schedule. Which factor (interest rate, annual vs semi-annual, down payment, length of loan, or ETP vs EPP) has the biggest impact on total amount of interest due?